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aoxVaR3-PRODUCEbe redactedftCCDocument4PAGEMILLFebruary2009MrTheodoreInvestment PublicEliopoulos Officer Real EstateSeniorCaliforniaEmpolymentRetirementSystemLincolnPlaza NorthStreet400Sacramento Dear ThankCA 95811MrEliopoulosyoufor theopportunity meetingtoProperties at the board of that meetingmade against Page Mill respond to the allegations have reviewed the transcript on December 15 2008toand prepared responseseach allegationTh
Citation preview
aoxVaR3-
PRODUCEbe redacted
ftCC
Document4
PAGEMILL
February
2009
Mr
TheodoreInvestment Public
Eliopoulos Officer Real Estate
Senior
California
Empolyment
Retirement
System
Lincoln
Plaza NorthStreet
400
Sacramento Dear Thank
CA 95811
Mr
Eliopoulos
you
for
the
opportunity meeting
to
Properties at the board of that meeting
made against Page Mill respond to the allegations have reviewed the transcript on December 15 2008to
and prepared responses
each allegation
They cover
eight
general
areasAlleged Attacks
on RentMill
Control
Allegationcontrol rent
Pagerent
Properties tenants.to
is
engagedin
in
t..anin
outrageous the Citys
attack
on
rent
and on
controlits
by challenging
court
moratorium
on
increasesand
attempt
make changesEast
the rent
control
law
Responsetenantsfiveits
Pagedecisions
Mill
is
not
attacking the
Palo
Altos
rent
control
ordinance
or
the
covered
by
it
Quite
oppoditeour
supportIt is
and abide by the Citys law andtheIt
court legal
have vindicatedthat
actions
interpretation
of
the City andto
aid with
lawyerstheir
has
beenIts
found illegalto
is
they
who appeardays the Boardquietly
havethe
problem
own
law
interesting aid
note
that
twenty-one before the
beforeto
Mayor Pagemotion the
ofMill
East Palo Altowith
and theforward
legal
lawyersrent rent
appearedincreases
charge
goingits
with that
illegal claimed
City
signed
to
dismiss
own
lawsuit
hikes above never uses
3.2% werethe term
illegal
Evenrent
city-financed
Berkeley insteadin
Peer
Reviewthe
Report
illegal the
increases
butis
recommendsof
obvious
go back
and
re-write
ordinance
The
City
nowin
the process
doing
exactly that
Having
lost
courtthat
the
CityMill
and tenantsis
are turningin
to
political
rhetoric
to
makeactually
theirit
case and claimquite
the
opposite
Page Each
engagedMills
an
attack
on
rent
control
whenat
is
of
Page
lawsuits
has
been aimed
maintaining
and
Transcript
of
Meeting
Public
commiuee Open Session Monday
Employees Retirement System Board December 135 15 2008
of
Administration
Investment
480 CowperTel
Street
2nd
Floor
Palo Alto 650.688.6820
cA
94301
650.833.38130
Fax
PM-0001
Mr
Theodore 2009
Ellopoulos
February
Page
enforcing
the local
rent
ordinance
and State
rent
control
laws
rather
than tearing
them
down Pagecontrol
Mill
has
never
taken
any
steps
to
repeal
or circumvent
East
Palo
Altos
rent
ordinance
Aflegationfictions.
Pagebiggestlimited of that
Mill
hasof
employedrental to
whatin
think
we
can
at
best
call
legal set
.As the
owner
property which
East
Palo Altofour of
they
have
uptheis
numerousownershipcalled
liability
companies
they
transfer benefits to
units
each
into
companyby therent
and then they claim thewhich laws.2
East Palo Altos what
the mom-and-pop
exemptioncontrol
was
designed
help small property owners
not be restricted
Responsedontlike
As with so many other issuestheir
in
East Palo Alto
the City and the advocatesunits thatif
own ordinancethecity-financed
which
controlintention
Even
exempts owners of four or fewer Peer Report recommends Berkeleyexisting definition of of
fromit
rent
is
the
of the City to the
narrow the
the ordinancein
they should
do
so
No one accusedFurthermoreseparatelegal
Berkeley
Peer Reportthe
engaging
legal
fictions
as
CaIPERSis
knowsindustry
practice
of
takingis
title
to
individual
properties
as
entities
an
standard
and
required by our lender
Nonethelessunitssingle
Page
Mill
has done so onlywith less
to
limited
there are only 38 propertiesfamily
than four units property
degree Of our more than 1700 Of the 38 properties 16 arewhich are exempt understate
residences
plus one commercial
law
The
Costa-Hawkins
ActIncreases
Alleged
Illegal
Rent
Allegation a-yearrent
Theveryhigh
City of
of East Palo Alto 3.2 percent..
has
rent
control
ordinance properties 50 percentin
and allows oncePagein Mill
increases
After
acquiringof
the
began cases
imposing over
rent rent
increases increasesin
reports rent
20 percentmultiple
some
100 percent
increases
times
one year some as
many
as three increases
year.3
ResponseMill
Prior
to
purchasing valueof
anytherent
residential properties
rental including
properties
in
East Palo Alto therents
Page
investigated
the
specifically
allowable
under
the Citys
long-standing
control
ordinance
Members
of
the
media and theto
public
have repeatedlyis
claimed
that
rent
increases
in
East Palo Alto
are limited
3.2%
That
incorrect
2Ibid.p 1373lbid p.136
PM-0002
Mr
Theodore 2009
Eliopoulos
February
Page
Thefrom
ordinance increase
hasin
two the
key
provisions rent
related citywide
to
maximumon anin In
rents
First
it
allows
an
annual
maximumgeneral
basedto
inflationary
factor
derived
the CPI for housing as the annual
Thats the 3.2%adjustment
referred
this
knownincrease
or
AGA
common allegation This is 2007 was 3.2% The AGAit
for
2008 was 2.9% secondunderstood the ordinancesingle
HoweverCity to
there
is
less
provision
in
that
requiresiheunit for that
issue
Certificate
of
Maximumstates
Legal
Rent
for rent
everythat
rent-controlled
every
yearunit
Each
Certificate
the
maximum
may be
charged
particular
Certificates landlordin
are prepared the City
and issued by the
City
and go
to
every
rent-control
tenant
and
Whenin
Page
Mill
representatives theythe
inquired that for
with
the
Citys rent
board
staff
before
investing
East
Palo Alto stated
were
toid
rent-controlled
landlords could therent control
charge
amountlaw also being
on
Certificate
unit
Both
ordinance
up to the and State wereyearly for theiris
confirmedless
that
information the certified fromto put thelet
At the time of
the purchases tenantsof
many
tenants
charged
than
maximum TheCity
thoughthe
would onrent
basis receive unit This
Certificate
informing them
maximumtheir rent
process
serves also to
tenants
knownotice
bothto
whether what the
landlord legally
overcharging raised to
them
but
them
on
as
can
be
Pagerents
Mills
investment
strategyto
was
to
purchase
the
properties
spend
considerableraise
sums on improvementsuntil
the propertiesin line
and the neighborhoodthecertified
and incrementallyallowed under
they
were
more
with
maximums
the
ordinance
By
the
fail
of
2007
Page
Mill
had
already
maderent
considerableIt
headway
with
its
improvement plans the Citys Rent Boardeliminate certified
but had
not
instituted
anyof
increases
wasthe
at rent
that
time that
beganto
discussing as
potential rentis
changesincreases theto
to
what theythen
referred
banking
The
difference
program to between TheCitys
ordinancerent
maximum and tenants actual and now does not requirebut
rent
bankedchargeless
amounttenant than the the
landlord
every
year
even
if
landlord to
charges
tenantyearly
maximum maximum thefactor
certified
maximum
continuesto
be
increased
onto
basis by the
inflationary
which
allows
landlord
defer an increase
subsequent yearreduce thecertified
Oncethan
the
Rent Boardthe deferred planned from
began
to
take steps
to
maximumrent
rents
and
eliminate
increasesin
Page
Mill
instituted
broaderrent
and deeper were
increasesto
originally the
November
of
2007
The
increases planned
necessary
prevent
City
permanently
confiscating
the future
increases
The
result
M-0003
Mr TheodoreFebruary
Eliopoulos
2009
Page
to
tenants
was
that
for
example
instead
of
receiving for
three
increases
for
$50 over 18
months
they would receive
one immediatethe the
increase
$150theCity
After
Page
Mill
gave
notice rents
of at
lawful
rent
increases
adopted an UrgencyAlthough the freeze the City
Ordinance implemented would freezeit
freezing
December
2001
levelslasting for
by the Urgencythe authority to
Ordinance extendMill
was temporaryfreezefurtherits
seven
months
have
the
up
to
22 monthsrent
The
rent
not only prevented
Page
from collecting upto
previously noticed
increasesprohibited
prevented
Page on
Mill
from
collecting unit for
the Certifiedincluding
maximumafter
rent
and
raising
the rent
covered
any reason
legitimate
vacancyCourtin
Page Mateoviolated with
Mill
challenged
thethat
Citys
Urgency
Ordinance unlawful the
and The
the
Superior foundthat
San
County agreedthree separate Citysthat
the action laws
wasand The
Court
the City hadinconsistent further
State
that
Urgencyprohibited
Ordinance wastheCity
the
owncould
rent
ordinance
Court
from
taking
actionsthat
would
implement the same policyindeedof lawfully
At the
Page
Mill
charge
tenants
same time the Court up to the maximum rent
confirmedstated
on
the city-issued
Certificates
Maximum
Legal Rent
The
City
disregardedtoits
the
Superior
Court
Order
The
Citysto
Rent Board
in
July
2008therule the
and Regulations designed adopted changes as the Court had already rejectecL policy changes PageRules rulemaking process
implement manyactively that
of
the samein
Mill
participated
andthe
repeatedly the
advised
the State
Rent
Board
the
proposedwithin
changesrent
were
contrary toAfter
Courts Orderrules
law and were
inconsistent
ordinance
new
were adoptedfinding
Pagethat
Mill
challengedrules
them
court law
And
with again the Court agreed Page Mill and were inconsistent with the rent ordinance
the
new
violated
State
In
addition
while to
the key issuesfurtherits
were being decidedFor
in in
court
the
City
continued
to
take
other actions
agendatenantit
exampleto
Februaryrents
2008
Board Hearing
Examiner grantedrejected
individual
petitions
lower
based
on the same theory
by theto
court
Also beforelandlordsto
attemptedMills
require
the proposed rule changes the City even adopted comply with them and twice refused to accept Page they didMill
registration
packets
because Page
not comply
with
the
new
rules
which
the the
BoardCity to
had
not
yet
adopted
sought
and received
Court
Order
requiring
accept
the contested
registrations
It
is
clear
that
Pageof
Mill
and the
City
have
different
views
as
toMill
the
implementationCity thatis
the
Rentits
Stabilization
Ordinanceits
RSOpolicy to
meaningthat
andtheisit
Pagethe
believes
trying
to
interpret
RSOMIII
to
reflect
current
preferences
The
problem sinceit
the City Council voter-adopted
does Page have
not have the authority
changein
RSOof
unilaterally
was
has thus
far prevailed
every one Citys
the lawsuits
hasthe
brought
The
courts
repeatedly
agreed
that
the
actions
have
violated
PM-0004
Mr
Theodore 2009
Eliopoulos
February
Page
rent that
ordinance the rent
and State laws andare lawful
in
the
process
has
either
explicitly
or implicitly found
increases
Allegation those .Rent lawsuits
.While the
Page
Mill
has wonthe
certain
technicaltheirwill
argumentsrent
on both ofunder perhaps thethe
fundamental
issue of not
legality of
increases
Stabilization of
Ordinance has and perhapspossibility of
been decided
and
not
be so
for
numberlegal
months
potentially
many more
given
the
complexities of
system and the
appeals
added.4prevailed on technicalitiesin
Responseactually
Advocates
claim that
Page
Mill
Thewhich
truth
is
the opposite
Page been
Mill
has
prevailed
separate
lawsuits are
all
of
support various
thecourt
fundamentalrulings
position
that
the
companysonthe
rent
increaseslegal
lawfulrather
The
have
based Judge
substantive ruled
issues
than
any
technicality
For example
Freeman
The
City
issuedentities for
rentin
certificates
to
Page
Mill
Management and2007set forth that
its
affiliated
Septemberof
are effectiveCertified certificate of
period
October and November one year Those certificatesissued
whichthe the
Maximum Rentis
Once
tate
law mandates
binding
and conclusiveis
the
Urgencyto the
Ordinancerent set
to
roll
upon the local agency the rent increase backthe landlordscertificate
Theto
effect of
3.2%
the past years actualrent
thus abrogatingforthin
right to
charge
up
amount
the
rent
Since
the Superior
Court rulings
in
Page
Mills
favor
the City has
filed
appeals
on two askedof
of for
the orders extensions key issuesof
Those appealsof at
are currentlybriefs
pending
but the City delaying
has repeatedly
time to stake
file
their
ultimately
any concretetheCity
resolution
the
Asfile
recentlyin
as the
January Courtof
30 2009Appealwith to
sought
its
fourth
extensionactivelyfinal
time to
papersof
By contrastCityin
Pageof
Mill
has
pursued
resolution that
the
legal
disputes as
the
hopes and
achieving
judgment
would inform the
parties
their legal
rights
responsibilities
going forward
Ill
Alleged
Predatory
Equityfunded
Allegation
Page.predatory
Mill
in
partis
by
CaIPERSinvestor
is
part to
of
predatory
equity
scheme.propertyrent
equity
which
using the..
funds
acquireis
rent-regulated
where
the clear
purpose
of
plan for the property
to
circumvent
the
regulations.5
Ibid
148
138
PM-0005
Mr TheodoreFebruary
I-I
Eliopoulos
2009
PagpResponseandeffort to of
The
advocacy andin
term predatoryslum housing
equity
implies
that
anysort
purchase
rehabilitate
deterioratedMill its
constitutes
some
underhanded amount ofthe Citysof
scheme Pageinvestmentdeteriorating
partner investorshistory of
have amassedto
the single the
largest quality of
capital rental
the
East
Palo Alto purchased Palo Park
increase
housingrental
stockin
WeEast
more These
thanunits
1700arein
units
thewell-
approximately established
2590
units called
Alto
an
old
neighborhood percentof
WoodlandPalo
on the westhousingvirtually
side of Bayshore Freeway stock
The
forty-five
the
East
Alto
rental of told
we
purchased units
has
undergoneincreased admitted
seismic security
upgrades Even
rehabilitation
uninhabitable
and
Mayor Ruben Abrica
the
CaIPERS
Board which he hasnt
anywhere
else someof
...their
We
do acknowledgetheir
the
beautifying
properties
good work that Page and you know trying
Mill to
has
done
in
improve
the
neighborhood.. Toconclude
added.6
that
effort
is
predatory
is
to
doom
thousands the
of
East
Palo
Altans
to
permanent
comes
from drug dealing
garbage-strewn gang-ridden and assorted criminal Harassmentof Tenants/Evictions
slums whereactivities
only
investment
capital
IV Alleged
Allegation the
Pageof
Mill
has
...engagedof
in.
.harassment reduced
against the
tenants
resulting
in
displacementin
hundredsattacks
people
.and
affordable
rental
housing
stock
our community andfrontal
Page
Mills
the Citys budget result of have negatively impacted as and city ..Some people are on tenants government
becoming
homeless.7
Response Change even positive change can be when like housing Page impacts vital interestsit
difficult Mill
for
those
involvedof
especially
has been an agentof
change
in
East Palo Alto
and
therefore
likely
to
be the focus
of
any discomfort residentsallegations
may
feel
We
accept they
that
possibility
We
do not accept
baseless
harassment
even
when
comefar
from
the
Mayortheaffordable significant rental
Moreoverportfolio
from
reducingto offer
housingof
stock
in
East
Palo Alto
our has
continuesis
supplyis
affordable
housing andat
What
changedstandardspoints to
that
this
affordable
housingwill
now
safeto
secure
meets acceptablevariety of price
of
habitability
We
are andof
continue
offer
housing
meet the demands
and sales taxes generated on the Citys andlocal
our increased property tax community Finally tremendously positive impact by our purchases have had diversedistricts coffers
school
6lbid 7lbid
144 p.143-144
PM-0006
Mr TheodoreFebruary
Eliopoulos
2009
Page
Allegation
While
theis
judicial
appeals
of
Page
Millsits
illegalevictions.8
rent
increases
are
underway
Page The
Mill
utterly intent
on proceedingexpensivewill
with
Responseveryfail
eviction
process taken
is
and time-consumingto
It
is
remedytenants
of
last
resort But
we havein
and
continue drinking
take action drug
against
who
to
pay rent
engageor
violence
public
illegal illegal
activity
threaten attacks
neighbors
employees
destroy
property
subletting
gang and
activity physical
Howeverfor
like
the
allegations
of
so-called
illegal
rent
hikes the 66little
issue.of
evictions evictions
is
exaggerated15in
Betweenof rent
July and
December
2008
there were
court
ordered
non-paymentthe units underfor substantial
out of more thanstipulated to
1700 units ThatsAnother
over 3.5
percent
and
of these evictions
were
by both parties
and the residents have remained have beenevicted
paymentviolations
arrangementof
by order of the
court
the rental
agreementsof rent
Each
possible eviction of the rental
can be based on two basic issues agreement is due and payableif
Non-paymentof
orin
other
violations rental
Under the terms on theof
of
our lease the
agreementsto late notice
rent
first
agreement monthIt
asis
most and
late
subject
chargeto
paidrent
after
theis
fifth
the
monthThisis fifth
Undertheto
the
rental industry
agreementpractice residentinstill
three daymulti-family
payIf
or quitis
served
standardof
housing has the option to come to the office provide an explanation as can receive one- time waiver of the applicable late fee if nothe manageris
the
rent
not paid after the
month the
the late paymentis
and
effort
made
to the
contact matteris
or to
the
managementto
office
either of
by
phone
or
in
person
forwarded
our attorney for the regain the
filing
an unlawfulof their
detainer action Duringthis
This process
action
required for an owneruntil
possession grantsto
property the
and upto
the
date
in
which
court
judgmentto
resident
has
an
opportunity
bring
their rent
current or stipulateinto their
mutually agreeable
payment
planthat
Wehave
have asallowed
Oompanythemto
entered
numerous tenancies
stipulations
pay
with
residents
continue
The
second
eviction
issue
is
for violationis
of to
lease issue
condition Notice
Underto to
the
Citys
Rent
Stabilization states
Ordinance an ownerbasisof
required
Ceasecure rangeor of
This notice
the
theto
violation
and
provides
an opportunity
ceaseissues
the but
behaviorprimarily
Theinvolve
notices three
cease
that
have been served cover types
wide
commonactivity
violation
Criminal or gangIllegal
SubtenantsHabitability/Condition
Apartment
Ibid
p.149
PM-0007
Mr TheodoreFebruary
Eliopoulos
2009
Page
Allegation
Heres anothersingle of
example
of
Page
Mill
proceeding
with evictionsto to quit evict
Oneis
wasthe
motherbeginningalleging
mother
who
receivedit
three-daythe
noticeintent
which
the eviction
process
signals
landlords the
the tenantactivity
that
she and her co-inhabitants were because
using
area for
gang-related
And
thats
interesting
there are only three other people are aged
whonot
live
with
her and image
thoseof
were her daughters
who
16
14
and 11 which
is
your typical
gang.9 Thewith
Responsetenantlegal lives
accuracy
of the
allegationin
begins
and
ends
with
this
fact
that
the
her three daughtersfailed to state that
services
adviser
two-bedroom apartment What the community was that she had an unauthorized guest or sub male suspect knownhigh
tenant
We
havealso
documentedin
as Jonathanlevel policy oftraffic
possibleactivity
stepson wasconsistent with our
the residence or sales
Our
security
noted
and
drug use
We
havewith
zero toleranceNoticeto
for for to
drug
activity
ondrugthe
properties
Thereceipt
tenantof
was
served the
Cease
suspected leave
activity
Upon
that
notice
tenant
asked
this
person
and
suspicious
activity
stoppedthis
Needlessthisisit
toto
say
woman wasthe problem residentsto
never
evictedlegal aid
Pageto
Mills to
managementtolerate
worked
with
tenantfair
resolve
Does
want usthe
drug activitytied to
Anddrug
to
our other
expose
them
security
problems
activity
Allegationof
Anotherthat his
individual
received
three-day
notice
that
was.Page
actuallyMill
the resultto
actions
sister
who wasin
co-inhabitant authorized
had taken.groupof
came
tow
vehiclesstarted
alleging
that
they werent
and
tenants
went outside and
protestingof
And
response the
many
them sayit
derisive to
say thatbrother
names And my face And thatreceivedMill
calling manager for Page Mill started the sister this case said You know you can And then her was extent of the verbal exchange on-siteinif
subsequently
notice
three
daysplacedto
later that
saying case
that with
they proother
were bono ones
threatening attorneg as
Pagewell
Managementfully
Andits
wevegoing
and
expect
that
be
dismissed
as
the
were.1
Responsenot tolerate
One
of
our employees receivedto
verbal ruled
threat
of
physical violence us sayingevictionin
We
will
threats to
our
one-time Thisis
threat
physically
employees judge harm our employeedifficult
against not
effect
that
didis
justify
proceedings so
tenants
one more example of just how have actually been evicted
it
to
evict
tenant
and why
few
9Ibid Ibid
p.150
PM-0008
Mr
Theodore 2009
Eliopoulos
February
Page
As
for
the towing parking
of cars
that
triggered
this
incidentin
weof
are proud
of
initiating
the
first
assigned parking
system ever implemented
most
neighborsin
now are guaranteed specific parking spot who park in other tenants spaces will be towedbut with time our tenants other non-East Palo Alto
Tenants who pay for Non-tenants visitors and nearbyour units This policy
wasthis
controversial
the
beginningin
tenants
have grown to appreciate houses take for granted apartment exampletenant
system
that
Allegation fromhis
10 And
then
one
final
is
who
is
HIV
positive for
and
suffers
neuropathy
apartmenttreatment
and high blood pressure. .He received an eviction doctors note that was despite the fact that he hadanimal thefor his
having
dog
in
authorizing with of
the dog pro
as
diseases
Andthatin
wehis
placed
that
case
bono
attorneyvirtually
And
result
was
settlement
again
kept
the
terms
the
tenancy
unchanged
and allowed
him
to
remain
apartment
with the animal.11
Responsewhere
The dog was dogs are prohibited
pit
bull
large
potentially
dangerousthe
pit
bull
in
propertysanitary
Neighbors
complained
about
dogs
barking
The
conditions on the patio
area where
the dog
was
kept were simply unacceptable
Because
of
the
owners
lack
of
controlliability
and care suchanimal At that
of
the
animal therepresentsto
potential
danger
to
other residents and the issued thefile
potential to quit
breed
us
as owners
wein
three-dayof
notice
for
cause
time there was no documentationor
any medicaltreatment
condition
treatment
the like
Whentenant
the
issue
was
brought
to
our attention
we
permittedwithAll
the
tenancy by
to
continueto
based
uponto
reasonable
accommodationthe adjacent
claim and residents
assurancesparties
theinto
keep the animal from agreement Coststhis
disturbing
entered
written
effect
Utility
Allegation
11
Page
Mill
attempted
to illegally
pass
throught
utility
costs.12
ResponseAlto rent
Once
again
advocatesactually to
are confusing
control
ordinance
throughs
so
our attempt
says The do so could hardly be
agenda with what does not prohibit ordinancetheir called
the
East Palo
utility this
passeffort
illegal
However
was
rescinded
Ibid12
p.151 136
PM-0009
Mr TheodoreFebruary
Eliopoulos
2009
Page
10
VI Christopher LundAllegation
12the staff13
Advocate PageMiii
Chris
Lund ..
two
weeks team
agoto
was
offered
$25000
by with
member CaIPERS
of
Properties
executive
cease
my
conversations
Responsehaltall
Chris Lund against promisein
wasus
shakingin
usfor
down
for
money
This
youngoffer
man12
promised
to
advocacythatit
return
$20000of
4SeeAs andthis forin
also Allegation the
below Heto
nowPolice
says
received
was
fact
was madeof
onlyat
exploratory
he claimswithall
have
the direction
cooperation For
the Palo Altoof this
Department as anddisturbing
part
its
investigation
into
extortion
the details Chris
bizarre
circumstance
see
the
attached
letters
to
Lund
and
accompanyAllegationgetting
materials
13
Chris
Lundover yearrole
Id justof
like
toin
let
the the
Board knowlocal
that national
this
is
going to
bethe
significant
amount
attention
both
and
media possibly
the
New
York
Timespiece
the
next four
weeksequity15
Gretchenis
Morgensonin
who
wrote
initial
May
this
on predatoryofin
veryin
interested
doing
follow-up
piecethis
focusing
on the
public
pension
funds
these
schemes
and focusing
on
example with
CaIPERS
East Palo
Alto
Responsehas hadsincestory called
We
have talked youngof
to
Msis
Morgenson
and she
tells
us that
the only contact
shehas
with
this
man
through
e-mails
he sends herstating that
Nonetheless
he
some
our
attorneys and
employees Lundtold
he was working
onbe out
with
Msis
Morgensonworking
and askingarticle
for
comment
At this time
Ms15th
Morgenson
saysin
she
not
on the
Mr
you on December
would
four
weeksour office escalatein
Please keep in mind this is the young man who came into demanded $20000 or he would go to Ms Morgenson and tenants groups
late
October
andof the
the
advocacy
and
their allies
See
related
allegation
and Response causedpeople
11
above
Allegation thelast
14
Chris Lundto
charges
that
Page
Mill
hasof
roughly
18
monthsafter
move Thats an
average
1500 people over per day 20 people per
week
week
week.16
Responsebeen
This
allegation
is
the
kind
of
unsubstantiated
erratic
advocacy
exposed wrong you need
to Mr Lundsto
numbershis
are
based
in
fiction
To
understand
why
we have hes
understand
premises
3lbid
152 arucle JessicaAlto
See attachedextortion
Bernstein-Wax
East
Palo
Alto
activist
landlord
trade
attempted
bribery
allegations 154 153
Palo
Daily
News
February
2009
Ibid Ibid
PM-0O10
Mr TheodoreFebruary
Eliopoulos
2009
Page
11
First Alto
he claimsis
that
the
average
household
size thatliving
for
renter-occupiedto
units
in
East
Palo our
3.83
people
per unit
and he uses
numberin
extrapolate that
prior to
arrival
there must have been
6700
people
the units that
Page
Mill
acquired
SecondFinally
he claims
that
the vacancy
rate
prior to
our acquisition
was
just
two
percent
he
claims
that
survey
he himself
conduoted
showed
current
vacancy
rate
of
24 percentthese the
Using over
largely
last
18
times population populationof
made-up numbers he guesses that 1500 people must have moved months The shorthand is alleged initial vacancy rate of two percent of 6700 134 minus alleged current vacancy rate of 24 percent times
6700
1608
equals
alleged
displacement
of
1474 people
The
facts
are these
His
estimate
of
average
householdfor
size
even
if
accurate
for large
East
Palo
Alto of
as
whole wouldof
would not be accurateby logicyield
our
property portfolio
Oursize
number
studios
much
smaller average householdis
That
means
his
estimate
6700 people beforeAt no time was
our arrival
widely
exaggerated
the vacancy something
rate
ofin
this portfolio
2%
Theis
actual
portfolio
at fact
acquisition that
was36
wasOnly
excess
of
10%
thisthe
an estimatebuilding
occupancy based on thepurchased Thatis
manyrate of
units
were
un-rentable 13
Moreoverapartments
first
we
contained
apartments more than
were
actually
occupiedrate of
vacancyof
60%surveythe actualin
Despite
Mr Lunds
self-styled
overall
rentable units has not exceeded
15%Lunds
the past eight
vacancy months
the
portfolio
So
evenin
were
we
to
accept
Mr
undoubtedly the numberof
flawed people
premise
ofall
6700 causes
people would
living
our units
prior tO
our acquisition
lost
to
be 335VII Alleged
Deceptive
Public
Relations
Allegationin
15
Page
Mill
has engaged
public/private
partnership with
in deceptive relations. public the City of East Palo Alto.17
.They
claim to
be
ResponsePalo Altorelationship
When Page Mills investors made the decision to acquire property in East we did envision ourselves as partners with the City We wanted positive of the rental as we worked to rehabilitate sizable percentage Citys
iblcJ
143
PM-0011
Mr
Theodore 2009
Eliopoulos
February
PageA2housinghousing improve stock securityrepair
neglected
streets
and roads and
seismically
upgrade
Regretfully Citys
the
rent-control
conflictsMill
discussedits
aboveto
appearthe plans
to
have where
poisoned
the
attitude for
towardcritically
Page
and
investors
point
evento
pemiit
applications
important residential
infrastructure
appear
have been
delayedNevertheless 8-hour-a-day bracingto
we havesecurity
plunged
aheadof
spending
nearly $12 million so far to implementrental
rehabilitate
uninhabitable buildings
units
install
seismic-safety landscapingto
prevent
possible
collapse
and
plant of
extensive
make
the community more livablearticlein
and address decades
blight
recent
Apartmentto
beenour
inspired
by our work
Management magazine said neighboring landlords have make some of their own upgrades The article highlightedcounterin
slate
people Palo
tile and granite entryways new wood decking would be surprised to find these upscale amenities
topscrime
saying housing
Manyin
multifamily for
Eastof
Alto
an area
that
has18
long
struggled with
reputation
and
lack
economicVIII
opportunities
Adversarial
Relationship
Allegation stretched
16
Page
Mill
has assumedof
an
adversarial
relationship
with
the
City that
has
the resources
the City
Responseof positive
Page
Mill
neverlittle
wantedcivic or
an
adversarial
relationship
with
the have
City Thattried
kind
relationship
forcelive
makes for changein
business
sensein
Instead badly
we
to
beof
We
employ 40 people
needed jobs and 70%
our
workforce
East Palo Alto
few
daysto
agopolice
to
assist the
the
East
Palo
Alto
Police
Departmentplacement
weto
signed
an our
agreementproperties area where
place
shotspotter the
gunshot
soundgunshots
system
on
so
can
triangulate
spund
of
and respond
the
actual
shots.occur
several beat Working With our security people we have hosted police have shared Our surveillance footage of criminal activity with the police
meetings
and
Our workof
with
the Menlo
Park
Fire
Department
which Troy
provides Holt
fire
protection
to
our part
the City
won
us praise from
area Fire Captain
IS
Emily 14
Landes
2008
Page MIII See attachedof
Properties
Transforming
East
Palo
Alto
Apartment Management OctoberBoardof Administration
Transcript
Committee
Open
Public Employees Meeting Session Monday December
Retirement
15 2008
System 145
Investment
PM-0012
Mr
Theodore 2009
Eliopoulos
February
Page
13
Weemergency
have safety
never20
seen
these
properties
in
such
good
state
of
fire
and
We
wanted
to
do even morethe
Webicycle
assisted
City
Engineer
in
preparing
and applying
for
state
funds
for
and pedestrian --Weoffered to
projects
pay
for to
grant
writer
consultant
to
help
East
Palo
Alto
gainin
access
to
available
money
pay
for repairing
some
of
the worst
maintained
streets
the state
We
were turned
downbus stopfor
Weto
offered
help protect
to pay to build them from accidents
the children
in
the Woodland
Park
area
and inclement
weather
We
were turned
downto
Webetter
offered
to
install
new
streetlights at
and
upgradeof about
existing
ones The
provide never
and safer
street
lighting
entirely
our cost
$600000
City
responded nor actedInsteadfailed to to
on the permit
request.21
the
Cilfy in
has wastedsingle
precious
resourcesruling
on
series
of
legal
actions
that
have
result
favorable
court
We
have They
repeatedly ignored
urged
the City not
take actions
that to
have already
been adjudicated
our advice
and dared
us to go
back
court
It
was
East
Palo Altos
stated
intention
to
confiscate
Pagelate
Millsin
future
rent carried
increases through
that
triggered
and accelerated
the rent
hikes that
began
2007 and
2008
Weof
very
much
regret
that
Ca1PERS
has put
been draggedit
into
the fray but as one
member
East Palo Altos
own
City Council
The
City
Council
is
the devil
here not CaIPERS.22
20
January21
20 2009 WestManager and Permit
Park
ManagementJennifer East East Palo Palo
office
Newell
Court
East
PaIb Alto
CA 94303Mill
See
attachedCity
correspondenceCity City of of
MooreAltoApril
Development
Officer
Page
Properties
to
Alvin
JamesApplication22
22 2008to pull
Mayfor
2008Servicein
Revocable
Encroachment
Alto
and
PGE
Application
AgreementMill
Joshua Melvin East Palo Area News Group 12/17/2008
Alto
council
asks
CalPers
investments
Page
properties
Bay
PM-001
PAGE MILL PROPERTIES
BATTLE
Owner
activist
trade barbs
East Palo Alto landlord community organizer exchange bribery extortion accusations
BY JESSICA BERNSTEIN-WAX DAILY NEWS STAFF WRITERbitter legal conflict
belweenstrange
East Palo Altostwist this
biggest the
landlord and
unhappy
tenantsactivist
took traded
week as
companyat
and
prominent under the
accusations
of attempted
bribery and extortion four-plex
Christopher
Lundof
community PageMill
organizer
and tenant
control
Properties
managementis
companyharassing
Woodland $600rent
Park Management increase threatening andvisits
LLC
says the firm
him
with
submitted
Pagewith
MIII
officials
demand paperwork he already an off-duty Palo Alto police lieutenant home by from them in counter that Lund tried to extort $20000letters that to his to
exchange
for agreeing
vacate
his unit
and solve the companys
problems
communitythe
groups andMills
unflattering
On Tuesday Pageaway fromand LundAgainst harassing saidlie Public
attorneysoffices
media coverage sent Lund letter ordering employees because
him
to stay
companys behavior
and
of his erratic
plans to responctwtth Participation bothoffice parties
an antiSLAPP
StrategEc
Lawsuit
lawsuit
The
only thing
seemand
Mills Palo Alto
Nov
agree on is that Lund met with General Counselto
visited
Page
Jim Shore and
Director of Operations
Russell that
Schaadt Lund who has workedwith
Shore
said
WednesdayMills
other tenants
to
oppose Page
THREATS
page 11
THREATSFrom pagerent
increases
offered
to
abandonthat to
his activismMill
for
$20000 Lundits
howeverbuy outlegal
says he merely suggested those tenants who wantedbattles
Page
could
cut
losses andin
leavecity
rather
than
engageletter
costly
with residentslater
and the
Four days
Page
Mills attorneys
sent
Lund
rejecting
his
PM-0014
demandlegation
$20000 buy-out Lund responded patently falsefor
Novwas
20 by
calling
that
al
ThenoquidIn
query regardingin
voluntary
vacate
agreements
exploratory
and
at
point
this
meeting was there Lund wrote
suggestion
of either
implicit or explicit
pro
quo
the days that followed
Pagean
Mill
approached Lund
the Palo Alto
Police
Department which Aspart
initiated
extortion
investigationcalled
of the investigation
Schaadt
on
Dec
while officers
listenedIn
that
tape-recorded
conversation
Schaadt
offered
Lund $20000
to
get
you out of the picture
Youdownalleged
said
Hey maybe weandall
the road
of this
buy you guys out and we get you out and you go stuff disappears Schaadt said referring to the has never been about personalall
Nov
conversation andit
ThatsLundthe
not on the tablelater
settlementin
responded
adding
That was
exploratory for
of the people
neighborhoodAlto police
Palo
Agent Dan
Ryan
confirmed
his
department re.corded thecomplaint
call
as
part
of an investigationfiled
into
Lund based
on
Schaadt
and
Shore
Weoffice
received
complaint
about
possible
extortion
and
we
did
investigate
that_alleqatioi
Ryan saidthe case
Wetofile
did
submit the case
to the district
attorneys
They have declinednotedthat insists that
Ryan
any charges was closedattemptedcall ofall
But Shore
Lund
to extort
the
company
then
backtracked
during the policethat
Mr
Lund
said
he was the source
of
our problems with CaIPERSwith
California Public
he was theagainst interview the policecall
System Employees Retirement one who was leading all of the advocacythat
the
newspapersEast Palo
that Altoin
us and
he could
makegivethis
that
all
stop
groups in Shore said Wednesday Schaadts
an
He
said
You
could
me money Lund who wassaid he interpretedin
unaware
of
investigation bribery
until
week
phone
as
attempt the
and went public with the story
Decemberis critical
After he launched
Web
site
www.epatenants beganstepping
org which upits
of
Page
Mill
Lund
said the
companyAlto
efforts
to discredit
him and
paint
him as
crazy
activistpolice
On Jan 29workfor
Lund saidPaloMill
Lt Timhis
Morgan
who does
contract
Page
was
loitering outside
house
snapping
photos
Lund
PM-0015
said he asked Morgan
to
identify
himself and
got no response
but recognizedChristine
him as the man who accompaniedGriffith
Schaadtrent
and
Pagesaidbut
Mill
attorney
to their carsin
at
January on both
board meeting The lieutenant was Lund
dressed Lund Scene
plain
clothes
occasions
said he later called
East Palo Alto policearrivedto take pictures
Morgan had
left
the
by the time
officers
Morgan wentunidentified
to the residence
of
Lunds
car after an allegedincident
person followedthe
Shores wife Shore said Thatposted anti-PageMill
occurred family
same day someoneis
flyers
near the Shore
homeunderstandingthat
Myhes wasLund
Mr Morgan whoto take
advisesof
us on security issues car to seeifit
not an employee the as
went
picture
Mr Lundscouple
same well
car
Shore said
Mr
Morgan
took
of photos of
Mr
RyanJohnson and
of the Palo
Alto Police
Department
said formerfor
policeMill
chief Lynneearly last
authorized
Morganin
to
do contract work
Pagethe
year
he began have
workingpolicy
for the
We We
companyof thatis
some
time
in
summeroutside of interestor the
the department that.carefullyto avoid
regulatesconflict
employment
and the purpose
any
appearance of conflict of interest Ryan said understand theres some controversy in recent months understand the history of the lawsuit and the allegations back betweenpoint
and and
weforth
Pagewhere
Millall
and
some
of the tenants
groupsmight
he
added
This
may be
of our
current
agreements
be reviewed
but thats
personnel
matterpolicy private
The departments employmentprivate
manualsecurityto
prohibits
employeesprivate
from accepting
outside
as
guardpotential
investigator or other similarof interestif
security positionthat
avoid
conflicts
Butsaid
doesnt
mean
they
cant have
outside
employmentCity Attorney
its not in Larkin
conflict
with their job responsibilities
Assistant
Donald
The Lundnoting
lieutenant played
no
role in the thatMill
departments statementis in
extortion
investigation
of
Ryan said Morgan echoedthat his contract
an interview
Tuesday
with
PagePalo
for
emergencynot involved
preparedness
con
sulting
As
far
as the
extortion
in
Alto for
Im Page
in
anyIt
of
thatto
Morgan said Im just consulting do with the police department
Mill
Properties
has nothing
PM-0016
But Lund workwith
said he wantsMill
authorities
to look into the
possibility that
Morganshis
if he
Page was in any wayit
influenced involved
the extortionin initiating
casethat investigation their
or getting
buddies on
E-mail Jessica
theyve got Bernstein-Wax
seriousat
problem on
hands
Lund
said
jbarnstein dailynews group corn
PM-aOl
iHL
rn
-o
On
-s
mostrole
of 01it
thecoIls
buildingslot
sir
hod
thein
hIghest the city
police lowest
service
Now
has
the
2001
MANHATTAN
BEFORE
200
MANHATTAN onein
AFTER gongfamily leader leaderin
In
inslonce single
was poor
living
homewas
repair arrested kept
The gongbut
eventuallyat
other
membersbythe then kinds
the
gangMill
congregatingthe
homehodofit
Page
bought
home ondareio
demowere
shed Thosewilling to
the
steps
luke
nprove
the
environ
rnenl
says Shoro
Page
Mill
Properties
continued
on page
60
16
october
2008
apartment
rncnogcrnc-i
PM-0019
Page
MIII
Properties
...ccnltnrred
from
pageJ
In
addition
to securityto
other
basic also elevatorsstairs
improvements
properties
were
needed
Crockedlocks leaky
pools brokendeteriorating roofs
busted daarrailings theissues
andof
and
wereto
just
few
that
neededfilled
be addressedwith
Manyandin
units
were
knee-high also
mold
garbage
The
companythroughout
invMtedEast
seismic
upgrades
their
Palo 100
Alto portfolio buildingsto
which
includes
around
ranging
from with
single-family
homesunits
complexes The
hundredshit
of
Should
Big
One
we haveout
much more protection
Shore
points
Nowingto
that
basic the that
life-safety
issues
ore
be
tackled upgradesreally
company
can
move on
may seem casmeticquolity oflife
but ing
affect
Landscappatches
420
OKEEFE BEFORE
has
been
huge
focuswith
Dirt
hove grownpertect
been
planted that spot
grassto
and overthe
weedshiding
usedfor
provide
weaponspulled
and drugoutMill
paraphernalia
hoverose
been bushes
andhas
reptoced even
with
Pagecity to
begunto
landscapingtheir
properfies
adjacentsure
propertIes areas
maketheir like
surrounding The
also look
best
ongoingthe
maintenance GaleMills
is
paintingRussell
Golden Page
Bridgedirector
jokesat
Schacdt
property
rronogernent
Inc
enhancementsunits Ar
are
aisa evrdent
inside lhetar
Woodlandunits
Apartmentsreceived
exomnple vacantpaint
hcve
new carpetnetsThe
tile
and
kitcnen
cabithein
camoonyplans privacy pointingto
also plant
resurtaced
000i andfor
palm
trees
tron
mare
and and
shadereplacing
Other
plans
include give the
siding to 420 OtCEErE
complexhrkianis
mare
cattage-slyle believesat
AFTER
lank nateskun.t
whoone
the
36has Of
.jeveiorrrent
many Vattote naIL
course
allot
lhee
irpravemenistic
well astried to
the City freeze
at
East Pataafter
Alto
whiclr corn
rrrn-endr.s ontanrintat prideii
We
tar
danr
came at cap Sham csimaeshasr.penr
rents
tenants
how
UUi
uroperties
and
companyso tar askwitnr
aaunc
$12still
miTtenIc
panedtime courtsfight that
aboutfreeze
the increases
Al press
operategive
andcuris
the
services
were
tryingAlt
much maie workAlto cas.s als
camecon
had he
beenis still
cented
by
he
residenTs thaiin
he adds
we
Thougntrol
East Paloat
under been
rent
rhaughthe
city
trying to
return tckeir..rt5
the
resiaertts
raspact
andthink
ameto
the
have
passedtram the
icreases
arde re
where
they
live
and
1itugh wankscurue vacat
ide
tenants
berret.tinrg
drecilca
were
ctaing
Theseat
rent increasesI.e
nave
beenare
accots as
Weand trae
rave
followed
thoughtful
legal
conerirron minanity
whoin
St
social never
policy and
explains never
Shareraise
We
living
the
unrts
will
rents
60
october
2308
apartment
mar agenrenl
PM-0020
outside rents
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Many
properties
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cent
Page
Mills arelike
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Were
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new
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obout two-bedroomfor
apartments addswith that the
and
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going
$400has
monthbeen
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company
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tenantslike
This
is
exactly
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of
change
for
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or fixedtheir
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order
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wouldin
occur
when
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investment Share
or
reduceSo
they
can
East Polo Alto
two
agofrom
place
farfor
aboutthis
50
familIes
have
been
says that never from
changebut the
imposed
above comesthings
approved
program
sticks within
when
the
changegreat not us
communityThis teltngis
Hewill
is
confident
thdt
in
the
end
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city situ
caning
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comwhatThisto
come around andis
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ation Far ing the
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more
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properties Alto
governmenttotry
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East Polo
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propertiesMillis
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ore
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Emily Londes
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Apartment ManagementAll righTs
caps-
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San
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Stack
Paint Press
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Francisco
While
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tweenresidential
commercialthere
properties explains are
one
big
com
apartment
management
october
2008
61
monalityin all
Schaadtyour
Your
residents
portfolios
most and
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em
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into the rhe
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Thehire
company
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to
employeesthat the best
tram
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aiaIa
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artherein
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landlords
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and
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been
inspired
make same
of
PM-0021
PAGEMILLII
April
22
2008
Anthony
Docto
birector Alto
of Public
Works
City of East Palo
of Public Department 1960 Tate Street East Palo
Works
Alto
CA
94303
Re
Submittal
of Street Lighting
Plans
for
Roadway
Safety Lighting
Upgrades
Beat
Dear Anthony
As
follow
December up to our meeting with you onElectrical Street
2007
where we submitted
the an
preliminary
Lighting
Plans
dated
11/02/07
we
are transmitting herewithlighting
Encroachmentof
Permit Applicationin
for the
proposed AltoPlans
roadway
safety
upgrades
westsets
Highway
101
the BeatElectrical
area of East Palo Street-Lighting
We
have
enclosed
eleven
11
of
Designelectrical
Developmentengineering
dated
4/17/08 and
prepared
by ourestimateis
consultant
AlfaTech
Cambridge Groupin calculating
their
preliminary
of probablethe
construction
costs for your use
the permit
fee
Also enclosed
work plan for the Capital Expenditurepreviouslyalso for
Street replicating
Lightingthis
lrnprocement Program wein
discussed
to
assist lighting
the City
in
program
other
areas
We
have
enclosed
specifications
and
completed
PGE Applicationthey canlike
of the Cityfor
Service
your
review
As
previouslyfor
discussed
we
submitted
these plans
to
PGE andWe
begininitiate
engineeringcontract in
drawings with order
PGEto
these upgradesat
upon
approval
the
earliest
opportunity thestreet
by and would
the City
would
to
appreciate
your review
and comments
move forwardadvanceplease
with
lighting
improvements
Thankany
you
in
forcall
your timely reviewat
and considerationor email
of these plans
If
you have
questions
me
650
833-3858
me
at
jmoore@pagemill.com
cc
Salani
Wendt
Transportation
Commission
Secretary
480 Cowper Tel
Street
Floor
Palo
Alto
CA
94301
650
833-3800
Fax 650 688-6820
PM-0022
PAGEMILLMay 82008
Alvin James City ManagerCity
of East
Palo Alto
2415
University
Avenue
East Palo Alto
CA
94303
Re
Roadway
Safety Lighting
Upgrades
Beat
Dear Alvin
Westill
understand very
andlike
much
within
the Beattoillicit
you were unavailable to meet with us today but we would levels that currently exist meet with you to discuss the limited lighting aiea which create concerns for vehides and pedestrians and can safetyare sorry that toactivities
contribute
whereStreet
darklighting
zones existplans our for
We
are
endosingsafety
for
your reviewupgrades
and which
consideration
the
proposedto
roadway
lighting
we planned onwith an
providing
you today
at
encroachment Docto
permit
application
meeting We formally submitted these plans and other rdevant to design and cost information
Anthony
on April 22 2008 advance
We
are transmitting theseat
plans
to
you
in
of our rescheduledto
meeting
on Monday
May 12 2008with youinputin
200pmdetail
to give
you an opportunityforwardto
more
We
look issue
them prior to discussing them meeting with you and appreciate your valuablereview
on
this
very important
Thank youassistance
If you have your time and consideration any questions do not hesitate or email to call me at 650 833-3858 please
for
or
if
can
be
of
me at
jmoorepgemill.com
Development
Officer
cc
Anthony
Docto
Director
of Public
Works
480 Cowper Tel
Street
21 Floor
Palo
Alto
CA
94301
650
833-3800
Fax 650 688-6820
PM-0023
Capital Expenditure Street Lighting
Improvement Program
Problem StatementTherein the right-of-way lighting levels
is
currently to
serious
lighting
deficiency
and
this
program
proposes
measuresuniformity limited
improve
the situation
There
are limited
and lack of lightingAdditionally lighting with has been
which
creates safety other
problems for vehiles and pedestrianscontinue to for
lighting levels
activities
be prevalentcondition
Additional
installed
on private properties
to
compensate
this
Mission
Statement
The
goal
is to
improve safety the most cost effective Improvement
and
efficient
way possible byfocuses 101
implementing on the
Street Lightingstreet
Program This improvementthe public right-of-way
program
primarily
lighting
system within
on the west side of U.S
in East Palo
Alto
General Program Scope
Evaluation Coordinate
of existingelectrical
street
lighting
conditions
locations
and
connections
requirements
of new lighting fixtures with
PGE and
verif
that
new
fixtures
can be mounted Development
on existing poles Documentslight
Prepare
Design
including
plans
and specifications
showing
existing and proposed Generally Engineering follow
new
street
locations for lighting adopted
guidelines
and standardsCalifornia
by lBS illumination and
SocietyAssociation
Caltrans
Department
of TransportationOfficials
AASHTOof Public
American Wthksfor
of State Highway Transportation Documentsto
Submit Design
DevelopentCity
City
of East Palo Alto
Department
review aid approvalwith
Coordinate
of East
Palo
Alto
on proposed might have Department
lighting
layout pole locations
and
any lighting requirements Coordinate with City of East Palonecessary Coordinate construction
that the City Alto
of Public
Works
to
obtain
the
encroachment
permits Palo Alto
with City ofBast
andPGE
on an agreed
upon
schedule
bf
PM-0024
PRonsszonAL
Coiuownon
ZACKS UTRECHT
LEADBETTERTclephoneFacsimile
415
956.8160
415288-9755
www.zulc.cozn
November
2008
Mr1643
Christopher
Lund
Woodland
Avenue
East Palo Alto
CA
94303
RE YOURDear
LETTER
DATED OCTOBER 262008
Mr
Lund
Wemanagerdated During
represent
Woodland
Park
Managementbuildingthat
LLC
and
1643
Woodlandletter to
LLCclient to
the to
property
and
owner respectively of
the
you you
reside delivered
in
Thisin
responds our and
your
letter
Octoberthat
26 2008
and
to
information
person
yesterday anddesist certain
meeting
you demandedinterfering for
$20000with
to vacate contractualis
1643
Woodlandthat
cease
from your inVestors
recent
activities
relations respectfully
our
client
enjoys with
Your demand
$20000
buy-outabout
rejected
With performingthe otherto
respect the
to
your complaints
maintenance
andare
upgradesfor the repairs
that direct
the
owner
is
roof
of your buildingin
these improvements
benefit
of you and ofthe
tenants not
residing
the building dwelling
As
the
worknotice
involved
to
commonCivil
areas
property and
any
individual
unit no
was required under
Code
Section
1954
Youclaimscertainly efforts to that
are
correct recite
that in
each
tenant
can
separately
sue
the
owner
for the
nuisancelandlord
andwill
other
you
your
letter that
Should
such
actions
be
broughtto
almost
prevail
To the extentand upgrade
your complaint appearsfor the
be
solely
premised
on
the
owners
improve
the property
tenantsis
there
can
be noto
nuisanceagainst
and no any such
interference
with an
implied
covenant
The owner
fully
prepared
defend
claims
Your
letter
fInther
alleges
withoutthat
supportacts
that
the
ownerrise to legal
is
attcmpting claim under
circumventCivil
the
EPA
rent control
ordinance Putting
and
such
somehowof
give or
Codethe Palo
Section
1940.2record
aside
the
complete
lack
factual
analysis in the
in
your
letter East
owner ofAlto unit
of 1643there
Woodlandarc
Avenueon
owns no more thanthe rental rate that
units
City offor
and
therefore
no
controls that the
maythe
be charged
your dwellingthe
Similarly and Thereits
we
understand your tenancycurrently will
predecessor been
ownerto
of
building onthe the
enjoyedrental
same
exemption chargedanticipates
that are
has never two
subject
controls
rate that lilly
may be
at least
legal
actions
pending
whereinwill
owner
rightsits
be favorablystate
adjudicatedlocal
The ownerinsure thatit
continueadjust
to aggressively the rental rates
pursue
all
of
right
under
and
law
to
may
of
its
PM-0025
Mr
Lund 2008
November
units
to the
market
conditions decisionto
To therefrain
extent
that
you have you
enjoyedrental
below marketrate
rental
rates
in the
past
ownersin
from sendingits fixture
increase should
not that
bethe
construed
any
way
as
waiver
of
rights that
in that suggests
regard your
We
understandis
ownerrate
mayfrom
have
mistakenly Thisrental letter rate
servedis
you
withto
notice that
unit
protectedis
by
rental
controlsthe
intended
clarify the self
1643
Woodlandexemption
Avenueprovided
automaticallyin the
exempt
controls
under
executing
SPA
Rent
Stabilization
Ordinance
The owner goodfaith
has agreed will
to
credit
your
rental
accountis
in the
amount of $200admissionrental the
as
gesture fault or
of
and goodthe part
This
good
faith gesture
made withoutto
of any onis
liability
on
of the landlordas
Shouldin
you wish
vacate
yourclient
unit
or before also preparedtrust
Novemberto
30 2008
you
indicatedinfull
your meeting refund your responsethe to
with oursecurity
owner
refund yourthisletter
Novembersatisfies
rent
andfor
deposit without Should
deduction anyfUrther
that
your requestfeel free
yours
you have
questions or concerns
to contact
undersigned.
Very
truly
yours
KS UTRECFIT
LEADRETTER
PC
drew
Zacks
cc
Jim Shore
Esq
PM-0026
LflLfl.JPROFESSiONAL
flit
Lv
UTD
CHT2009
233 San
MontgomeryFrancisco
Street
Suite 94104
400
California
CORPORATION
Tclcohone Facsimile
413
956-8100 288-9755
4b
www2uIpc.com
February
Mr1643
Christopher
Lund
Woodland Avenue
East Palo Alto
CAHalt
94303 Harassment Trespass andIntimidation
ReDear
Request
to
All
Mr Lundrepresent
We
Woodland
Park
Managementrespectively
LLC and 1643 Woodlandbuilding
LWin
the
property
manager andto
ownerthatMill
of the
you
reside
This the
letter
is
requestof
you
refrain
from further direct communications Park
with
employees
Pagethat
Properties Woodlandin this
ManagementFurtherthis
LLCis
andto
1643
Woodlandon
LLC except as providedcertain assertions
letter
letter
place youpotentially
notice
made
by you
are untrue andof
maliciousclient
and slanderous you havebe
Continued assertionof their lack that
untrue statementsmerit areresult of
about
my
after
been informedfor
of factual
defamatory your untrue
and and
you
may
liable
any damages
may
occur
as
malicious assertions
Fact Page You havebusinessthis
Mill
Properties
..Has Improvedyour position and
the
Neighborhoodyour belief that our
right
to
advocateare
assert
practices
predatory
Howeverthe
we
disagree
Your usecontributions
of
pejorativeclient
andto
offensive
term ignores
very positive housing
mythe
madeof his
enhancing
East Palo Altos
stock and
reducing
numberat
virtually
uninhabitable
slum unitsthe
Abrica
recent appearance
before
To quote Mayor Ruben CalPers Board workthat PageMill trying
....We
do acknowledgein
sometheir
of the good properties
hasto
done
their
beautifying
and you knowaddedj
improve the neighborhood.. Even youreal
in in
one
issue
that the of your discussions with my client acknowledged East Palo Alto is ...about to maintain some tryingin
affordable
housing stock
the
area and also allowing added.J
Page
Mill
to
make
reasonable profit
PM-0027
Christopher February
Lund 2009
Page
of
Fact So-calledYour
illegal Rent Hikes
Werentdescribe
Illegal
After All
epithet
predatory
equity
fails
to
the
need
to
increase the
attract tenant security quality of East Palo Altos housing stock improve reduce slum housing to improve the neighborhood investment and jobs
Nevertheless
while
it
is
offensive
and
catchy
equity may bethe rent
protected
speechbut
Howeverasthis
you
your phrase continue
predatoryto assert that
increasesin
are
illegal
matter hasto
now beendo soto
litigated
and
decidedliability
Page Mills favor you cannot continue The making of false statements with thereputation
without
risking
intent
damageSpecifically
someonesnot only
and
business amountsthat
to
defamationin
have
the courts
determined
landlord
East Palo Alto
may
even the City and up to the maximum rent stated on the certificate the Rent Stabilization Board have now conceded this key point In recent chargebriefs thatit
bothis
in
the Superiorthat the
Court and
the
Court of Appealto
the
City stated
true
law allows
landlords
charge
tenants
up to thethatthisis
amountsthe
stated
onif
the
certificatesis
Thein
City further certificates
concedescalculation
case
eventhe
there
an
error
the
ThusPark and
bytheto
definition various
disputed
rent
increasesprevailed with
arein
legal
Woodland
property owners
have
every phaseif
of the
litigation
date
Nowfor
that
you
are
armedthe
this
knowledgeasresult of the
you continuecanof
to
publicizeliable
statements
that
rent
increasesclients
are illegal you
be held you
now knowpotential
damages to be untruefinancial
incurred
by
my
statementsof
To
give
you
an idea
magnitude
such
damage
haveto
attachedPull
recent newsin
article Mill
East
Palo Alto
Council Asks CalPers
Investments
Page
Properties
Fact ExtortionWhile
Is
Not Protectedbad no andright
by the
First
Amendmentis
some
abusive
evento
ugly
behavior
protected
underto
the
Constitution
you have
extort
my
clients
see myand
letter
you
of
Novembertenants with
2008allegations
intimidate
andto
harass employees be untrue
potential
you
know
More
specifically of
as you
knowwould
you camein
to
my
clients of
offices
on
the
late
afternoon
Novemberor
2008 andyou
the
presence
two witnesses usin
and
demandedincluding
$20000but limited
continue hammeringthe
the
media
to lining
up
Joshua
Melvin
East Palo
Alto
council
asks calPers
to
pull
investments
in
Page
Mill
properties
San Jose Mercury
December
17 2008
PM-0028
Christopher February
Lund 2009
Page
of
New
York
Times2and
directing
the
advocacy
of
Youth
United for Communitywith the California
Change3Public7th
threatening
our business relationship
Employees advocacy
Retirementrejecting against
sent youall
letter
System And as you know for $20000 your demandMill
onin
Novemberfor is
return
haltingclient
Page
What
you
may
not knowCity ofIn first
that
my
filed
complaintthe
againstcity in
Police regret
Department
you which
for extortion the
with
the
Palo Alto
crime took place Departmentthe
retrospect time youto direction of
we
didnt
go
directly
to the so-called
Police
committed
extortion
The
briberyin
offer you reportedoffer of
CALPERS and some media wasthe
fact
an
madeyoufor
at the
Palo Alto
Police
during
their investigation
extortion
What
is
most
interesting
about
the police to
directed
call
is
that
while you you
attempted todid
make
blanket
denial
cover-up
your true
intentions
admit the following
The You
meeting
took
place
requested
$200002008it
In
addition by December your storyclaiming
theall
date of the police
inttiated
call that
you
changedearlier
wasjust
misunderstandingexploratoryforall
and
yourin
demand
for
$20
000
was
..
of the
people
the
neighborhood.4
Your Pagethink
use5-6
of the
New
York
Times
to
extort
moneyis
is
particularlyto
loathsome going
Russell
Schaadtthis stuff
mean whathave
going
happen
forward
Because
dont
you can
control
Chris
Lund Russell amof with terms
you
to
trust
me on.ofIn
have .you justis
to
trust
me on twoIn
things of
Number onethe talks in
driving
the majority alright former terms
whatterms
happeningis
nowteammedia
alright on
terms
your investorstalkingto in
of whatthe the
happeningin
the accounting ofin lining
front the
partners
on up
executive regional thatis
terms
up of
local
media coverage
of
lining
coverage
terms
lining
up the
New Yorkofii
Timesif
and
the coverage.1
goingthis
to
come on thatto
amthat
driving that
all
and
you guys.
have. .you knowas scientist
is. .you have
know
am
data driven
person
right
am
trained
am
not an average
person
addedSchaadt In the properties there are flyers on the door and you know dont guess how this is going to stop we sit down and meet or do whatever.. mean you know Chris Lund fleah can.. am in most of what you guarantee you position now to control know YUCA United for Community Change or some of these.. alt the other groups you had stepped in becau
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